Schlagwort-Archive: Apple

Apple will be around for a long time. But the next Apple just isn’t Apple.

Apple, the iPhone, and the Innovator’s Dilemma

David Paul Morris/Bloomberg/Getty Images

If you re-read the first few chapters of The Innovator’s Dilemma and you insert “Apple” every time Clayton Christensen mentions “a company,” a certain picture emerges: Apple is a company on the verge of being disrupted, and the next great idea in tech and consumer electronics will not materialize from within the walls of its Cupertino spaceship.

The Innovator’s Dilemma, of course, is about the trap that successful companies fall into time and time again. They’re well managed, they’re responsive to their customers, and they’re market leaders. And yet, despite doing everything right, they fail to see the next wave of innovation coming, they get disrupted, and they ultimately fail.

In the case of Apple, the company is trapped by its success, and that success is spelled “iPhone.”

Take, for example, Christensen’s description of the principles of good management that inevitably lead to the downfall of successful companies: “that you should always listen to and respond to the needs of your best customers, and that you should focus investments on those innovations that promise the highest returns.”

Molly Wood (@mollywood) is an Ideas contributor at WIRED and the host and senior editor of Marketplace Tech, a daily national radio broadcast covering the business of technology. She has covered the tech industry at CNET, The New York Times, and in various print, television, digital and audio formats for nearly 20 years. (Ouch.)

Then think about the iPhone, which, despite some consumer-unfriendly advances like the lost headphone jack and ever-changing charging ports, has also been adjusted and tweaked and frozen by what customers want: bigger screens, great cameras, ease of use, and a consistent interface. And the bulk of Apple’s investment since 2007, when the iPhone came out, has been about maintaining, developing, and selling this one device.

In the last quarter of 2018, the iPhone accounted for $51 billion of Apple’s $84 billion in revenue. Its success, the economic halo around it, and its seeming invincibility since its launch have propelled Apple to heights few companies have ever imagined. But the device will also be its undoing.

Here’s what happens when you have a product that successful: You get comfortable. More accurately, you get protective. You don’t want to try anything new. The new things you do try have to be justified in the context of that precious jewel—the “core product.”

So even something like Apple’s Services segment—the brightest non-iPhone spot in its earnings lately—mostly consists of services that benefit the iPhone. It’s Apple Music, iTunes, iCloud—and although Apple doesn’t break out its numbers, the best estimate is that a third or more of its Services revenue is driven by the 30 percent cut it takes from … yep, apps downloaded from the App Store.

The other bright spot in the company’s latest earnings report is its Wearables, Home, and Accessories category. Here again, Apple doesn’t break out the numbers, but the wearables part of that segment is where all the growth is, and that means Apple Watches. And you know what’s still tied nice and tight to the iPhone? Apple Watches.

Even Apple’s best-selling accessories are most likely AirPods, which had a meme-tastic holiday season and are, safe to say, used mostly in conjunction with iPhones. (I’d bet the rest of the accessories dollars are coming from dongles and hubs, since there’s nary a port to be found on any of its new MacBooks.) As for stand-alones, its smart speakers are reportedly great, but they’re not putting a dent in Amazon or Google, by latest count. Apple TV, sure. Fine. But Roku shouldn’t have been embedded in a TV before Apple was.

And none of these efforts count as a serious attempt at diversification.

You may be tempted to argue that Apple is, in fact, working on other projects. The Apple acquisition rumors never cease; nor do the confident statements that the company definitely, absolutely, certainly has a magical innovation in the works that will spring full grown like Athena from the forehead of Zeus any day now. I’m here to say, I don’t think there’s a nascent warrior goddess hiding in there.

Witness Apple’s tottering half-steps into new markets that are unrelated to the iPhone: It was early with a voice assistant but has stalled behind Amazon and even Google Assistant. It wasn’t until last year that the company hired a bona fide machine-learning expert in John Giannandrea, former head of search and AI at Google—and he didn’t get put on the executive team until December 2018. That’s late.

There’s its half-hearted dabble in self-driving technology that was going to be a car, then became software, then became 200 people laid off. Its quailing decade-long attempt to build a streaming service would be sort of comical if there weren’t clearly so much money being thrown around, and so tentatively at that. Rumors of its launch go back as far as 2015, although now it’s supposed to launch in April—this time they mean it.

But even if the streaming service actually arrives, can it really compete against YouTube, PlayStation, Sling, DirecTV, Hulu, and just plain old Netflix? Apple’s original programming is also apparently “not coming as soon as you think.” Analysts are, at this point, outright begging Apple to buy a studio or other original content provider, just to have something to show against Netflix and Amazon originals.

Of course, lots of companies innovate through acquisition, and everyone loves to speculate about what companies Apple might buy. Rumors have ranged from GoPro to BlackBerry to Tesla to the chipmaker ARM. Maybe Netflix. Maybe Tesla. Maybe Disney. Maybe Wired. (Apple News is a hugely successful product … mostly on iPhones, of course.) But at every turn, Apple has declined to move, other than its $3 billion Beats buy in 2014 (which it appears to be abandoning, or cannibalizing, these days).

Now, let me be clear, once again. None of this is to suggest that Apple is doing anything wrong. Indeed, according to Christensen, one of the hallmarks of the innovator’s dilemma is the company’s success, smooth operations, great products, and happy customers. That’s one of the things that makes it a dilemma: A company doesn’t realize anything’s wrong, because, well, nothing is. Smartphone sales may be slowing, but Apple is still a beloved brand, its products are excellent, its history and cachet are unmatched. But that doesn’t mean it has a plan to survive the ongoing decline in global smartphones sales.

The Innovator’s Dilemma does say an entrenched company can sometimes pull out of the quicksand by setting up a small, autonomous spinoff that has the power to move fast, pursue markets that are too small to move the needle for a company making $84 billion a quarter, and innovate before someone else gets there first.

Well, Apple has no autonomous innovation divisions that I know of, and the guys in charge are the same guys who have been in charge for decades: Tim Cook, Eddy Cue, Phil Schiller, Craig Federighi, Jony Ive—all have been associated with Apple since the late ’80s or ’90s. (I mean, has there ever really been a time without Jony Ive?)

You see what I’m saying here: brilliant team with a long record of execution and unparalleled success. Possibly not a lot of fresh ideas.

And then there’s the final option for innovation, one that Apple has availed itself of many times in the past. As Steve Jobs often said, quoting Picasso: “Good artists copy; great artists steal.” The iPod was born of existing MP3 players; the iPhone improved on clunky, ugly smartphones already on the market. The MacOS and the computer mouse were developed to maturity (yes, with permission) after being invented at Xerox PARC.

So maybe Apple will find the hottest thing in tech that’s still slightly unknown and come out with a better version. But is there such a thing as a way-sexier cloud computing business?

I guess it’s possible that the rumored virtual- and augmented-reality headset that Apple is supposed to release in 2020 will take the world by storm and popularize VR in a way that no one imagined, and like AirPods, will take a look that’s painfully dorky on the surface and turn it into a not-quite-ironic must-have statement of affluence and cool. It’s happened before. But this time, I think the company will get beaten to that punch—or whatever punch is next. Apple will be around for a long time. But the next Apple just isn’t Apple.

Source: https://www.wired.com/story/ideas-molly-wood-apple/

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As of 4/2018 smartphone users upgraded their phone every 35 months (on average)

The Silver Lining in Apple’s Very Bad iPhone News

David Paul Morris/Bloomberg/Getty Images

Apple on Wednesday warned investors that its revenue for the last three months of 2018 would not live up to previous estimates, or even come particularly close. The main culprit appears to be China, where the trade war and a broader economic slowdown contributed to plummeting iPhone sales. But CEO Tim Cook’s letter to investors pointed to a secondary thread as well, one that Apple customers, environmentalists, and even the company itself should view not as a liability but an asset: People are holding onto their iPhones longer.

That’s not just in China. Cook noted that iPhone upgrades were “not as strong as we thought they would be” in developed markets as well, citing “macroeconomic conditions,” a shift in how carriers price smartphones, a strong US dollar, and temporarily discounted battery replacements. He neglected to mention the simple fact that an iPhone can perform capably for years—and consumers are finally getting wise.

As recently as 2015, smartphone users on average upgraded their phone roughly every 24 months, says Cliff Maldonado, founder of BayStreet Research, which tracks the mobile industry. As of the fourth quarter of last year, that had jumped to at least 35 months. “You’re looking at people holding onto their devices an extra year,” Maldonado says. “It’s been considerable.”

A few factors contribute to the trend, chief among them the shift from buying phones on a two-year contract—heavily subsidized by the carriers—to installment plans in which the customer pays full freight. T-Mobile introduced the practice in the US in 2014, and by 2015 it had become the norm. The full effects, though, have only kicked in more recently. People still generally pay for their smartphone over two years; once they’re paid off, though, their monthly bill suddenly drops by, say, $25.

The shift has also caused a sharp drop-off in carrier incentives. They turn out not to be worth it. “They’re actually encouraging that dynamic of holding your smartphone longer. It’s in their best interest,” Maldonado says. “It actually costs them to get you into a new phone, to do those promotions, to run the transaction and put it on their books and finance it.”

Bottom line: If your service is reliable and your iPhone still works fine, why go through the hassle?

“There’s not as many subsidies as there used to be from a carrier point of view,” Cook told CNBC Wednesday. “And where that didn’t all happen yesterday, if you’ve been out of the market for two or three years and you come back, it looks like that to you.”

Meanwhile, older iPhones work better, for longer, thanks to Apple itself. When Apple vice president Craig Federighi introduced iOS 12 in June at Apple’s Worldwide Developers Conference, he emphasized how much it improved the performance of older devices. Among the numbers he cited: The 2014 iPhone 6 Plus opens apps 40 percent faster with iOS 12 than it had with iOS 11, and its keyboard appears up to 50 percent faster than before. And while Apple’s battery scandal of a year ago was a black mark for the company, it at least reminded Apple owners that they didn’t necessarily need a new iPhone. Eligible iPhone owners found that a $29 battery replacement—it normally costs $79—made their iPhone 6 feel something close to new.

“There definitely has been a major shift in customer perception, after all the controversy,” says Kyle Wiens, founder of online repair community iFixit. “What it really did more than anything else was remind you that the battery on your phone really can be replaced. Apple successfully brainwashing the public into thinking the battery was something they never needed to think about led people to prematurely buy these devices.”

Combine all of that with the fact that new model iPhones—and Android phones for that matter—have lacked a killer feature, much less one that would inspire someone to spend $1,000 or more if they didn’t absolutely have to. “Phones used to be toys, and shiny objects,” Maldonado says. “Now they’re utilities. You’ve got to have it, and the joy of getting a new one is pretty minor. Facebook and email looks the same; the camera’s still great.”

In the near term, these dynamics aren’t ideal for Apple; its stock dropped more than 7 percent in after-hours trading following Wednesday’s news. But it’s terrific news for consumers, who have apparently realized that a smartphone does not have a two-year expiration date. That saves money in the long run. And pulling the throttle back on iPhone sales may turn out to be equally welcome news for the planet.

According to Apple’s most recent sustainability report, the manufacture of each Apple device generates on average 90 pounds of carbon emissions. Wiens suggests that the creation of each iPhone requires hundreds of pounds of raw materials.

Manufacturing electronics is environmentally intense, Wiens says. “We can’t live in a world where we’re making 3 billion new smartphones a year. We don’t have the resources for it. We have to reduce how many overall devices we’re making. There are lots of ways to do it, but it gets down to demand, and how many we’re buying. That’s not what Apple wants, but it’s what the environment needs.”

Which raises a question: Why does Apple bother extending the lives of older iPhones? The altruistic answer comes from Lisa Jackson, who oversees the company’s environmental efforts.

“We also make sure to design and build durable products that last as long as possible,” Jackson said at Apple’s September hardware event. “Because they last longer, you can keep using them. And keeping using them is the best thing for the planet.”

Given a long enough horizon, Apple may see a financial benefit from less frequent upgrades as well. An iPhone that lasts longer keeps customers in the iOS ecosystem longer. That becomes even more important as the company places greater emphasis not on hardware but on services like Apple Music. It also offers an important point of differentiation from Android, whose fragmented ecosystem means even flagship devices rarely continue to be fully supported beyond two years.

“In reality, the big picture is still very good for Apple,” Maldonado says. Compared with Android, “Apple’s in a better spot, because the phones last longer.”

That’s cold comfort today and doesn’t help a whit with China. But news that people are holding onto their iPhones longer should be taken for what it really is: A sign of progress and a win for everyone. Even Apple.

Source: https://www.wired.com/story/silver-lining-apples-very-bad-iphone-news/

Speculation is mounting that Jony Ive has checked out at Apple

Last fall, Apple Chief Design Officer Jony Ive was asked what he would do if he weren’t designing for Apple.

„If I wasn’t doing this, I think I would just be drawing or making stuff for friends,“ Ive said during an interview with Charlie Rose. „Maybe it would just be Christmas tree ornaments, I don’t know.“

Last Sunday, the London hotel Claridge’s unveiled its annual Christmas tree installation.

It was designed by Ive.

Ive’s official Apple bio says he’s „responsible for all design at Apple, including the look and feel of Apple hardware, user interface, packaging, major architectural projects such as Apple Campus 2 and Apple’s retail stores, as well as new ideas and future initiatives.“

But people who know the company well are starting to suggest that Ive has been taking more of a backseat role and may not even be deeply involved in product design anymore, which was where he made his biggest mark on the company.

„I’ve heard that he has lately been checked out or not as directly involved with product design, and that he’s been largely focused on architecture,“ Apple watcher John Gruber told Jason Snell, the former editor of Macworld, during a podcast last week. Ive is mostly working on the new retail stores and working closely with head of retail Angela Ahrendts, Snell said he’s heard.

Gruber later clarified on his blog that he did not mean to imply Ive was on his way out, and that Apple sources have told him „every aspect of every new product remains as much under his watchful eye as ever.“

Apple BookKif Leswing/Business Insider

There isn’t a whole lot of evidence one way or the other. But a new glossy book taking a look back at Ive’s best designs is certainly stoking the speculation.

„Criticizing execs is unpopular, but Ive seems stretched thin, burnt out, and bored,“ Apple blogger Marco Arment tweeted. „I’d love to see some fresh design leadership at Apple.“

The history

ive treeRob Price/Business Insider

During Apple’s meteoric rise from 2000 to 2011, Ive was at Steve Jobs‘ side.

He ran Apple’s industrial design department, which was empowered to imagine products like the iPhone. Ive often gave concepts to Apple’s engineering department, telling them to make the product design possible, which is counter to how industrial design works at other high-tech firms.

Ive considered himself Jobs‘ closest friend, and he is still seen as a critical person for the company. His 20-person team designed every single one of Apple’s iconic products in the past 15 years, from the iPod to the iPhone.

If Ive were to retire officially, it could spook investors.

After Jobs‘ death, it looked as if Ive had received even more responsibility at Apple. He expanded his role from strictly physical industrial design to digital user interface as well.

Then, in the summer of 2015, Ive received a promotion to chief design officer. The news was announced in a British newspaper on a bank holiday Monday.

CEO Tim Cook explained the move in a memo to employees, which was leaked and published on 9to5Mac:

„As Chief Design Officer, Jony will remain responsible for all of our design, focusing entirely on current design projects, new ideas and future initiatives. On July 1, he will hand off his day-to-day managerial responsibilities of ID and UI to Richard Howarth, our new vice president of Industrial Design, and Alan Dye, our new vice president of User Interface Design.“

When Ive left, Harper Alexander, his handpicked lab manager and right-hand man, left the group, too — he now does corporate recruiting for Apple.

Many analysts, such as Above Avalon’s Neil Cybart, still believe that Ive is one of the most important people at the company. „With Jony Ive positioned as overseer of Apple design, his influence on Apple’s product direction cannot be overstated,“ he wrote earlier this month.

But earlier this spring, Apple’s iPhone SE launched without a product explanation from Ive, as most previous Apple products had received. And he kept a low profile at the launch event — only one reporter who attended told us he saw Ive, while many others said they thought he wasn’t there.

Ive contributed voice-overs to the launches of the iPhone 7 and MacBook Pro this fall. But as many have observed, he did more press, including two interviews, for his new book than he did for Apple’s latest products.

Ive is certainly keeping a much lower profile than he did before his promotion.

Impossible to tell

IVE SECSEC

Despite Ive’s clear importance to the company and his role in Apple lore, the company does not list Ive as one of its six most highly compensated executives in Securities and Exchange Commission documents.

(Those execs are CEO Tim Cook, CFO Luca Maestri, Ahrendts, Online Services SVP Eddy Cue, Hardware SVP Dan Riccio, and General Counsel Bruce Sewell.)

The last time Ive was listed on a SEC Form 4, which is required whenever an „insider“ acquires or disposes of stock, was in 2009. It said he owned 28,127 shares of Apple stock at the time. There’s been a 7-1 split since then.

Simply put, nobody outside Apple knows how much Ive makes, even though we know what the rest of Apple’s executive team makes.

Shareholders do not know what Ive makes. It could be massive, or he could already be collecting a nominal salary because he’s effectively retired. It’s impossible to tell.

Making it harder for investors to gain clarity on the situation, Ive has traditionally run a leak-free, extremely secretive ship. Even Snell and Gruber, with their inside Apple sources, realize there is only so much an Apple employee would know, given that Ive’s team has traditionally worked apart from the company, especially the software engineering department.

Former Apple exec Scott Forstall, who developed iOS, could not get into Ive’s lab with his senior vice president ID card, according to a biography of Ive.

The team was small, at fewer than 20 members, although it has grown recently and now includes user interface as well. Few people ever leave the group, although Daniel Coster, a longtime member, was wooed by GoPro.

These team members sit together at lunch and are fiercely loyal to one another. If anyone knows if Ive is no longer showing up to the shop, it’s them, and they’re not talking — to other Apple employees or the press.

Apple did not respond to a request for comment.

The future?

Apple Campus 2Apple Campus 2.City of Cupertino

Of course, Ive could just be head down, working on Apple’s next big thing — the successor to the iPhone that will ensure the company remains the world’s most admired for years to come.

Snell suggests that the Apple Car, now seemingly on the back burner, was an Ive passion project. That’s certainly plausible. One of the reported goals for the Apple Car project was to retain top talent who might be bored working on incremental iPhone improvements.

But it’s much harder to see Ive driving the development behind a pair of smart glasses, or augmented reality, which Apple is currently working on.

Ive told The New Yorker that the face „was the wrong place“ for technology, in a long profile written in the fall of 2014, just before Apple unveiled the Apple Watch. Ive sounded tired:

„He was a few days from starting a three-week vacation, the longest of his career. The past year had been ‚the most difficult‘ he’d experienced since joining Apple, he said later that day, explaining that the weariness I’d sometimes seen wasn’t typical. Since our previous meeting, he’d had pneumonia. ‚I just burnt myself into not being very well,‘ he said.“

A quote from Jobs‘ widow in the same profile hinted at a role change as well:

„He had discouraged the thought that Newson’s appointment portended his own eventual departure, although when I spoke to Powell Jobs she wondered if ‚there might be a way where there’s a slightly different structure that’s a little more sustainable and sustaining.‘ Comparing the careers of her husband and Ive, she noted that ‚very few people ever get to do such things,‘ but added, ‚I do think there’s a toll.'“

Ive’s studio is currently located on the ground floor at 2 Infinite Loop, with a direct passageway to 1 Infinite Loop, where Cook and the rest of his executive team members meet weekly.

When Apple moves into its new „Spaceship“ Campus 2, the industrial design group will get the best location on the ring.

They’ll be on the fourth floor, in a new 30,000-square-foot studio. They will have a view of much of Apple’s campus. It’s a symbol of how important the industrial design group led by Ive has been to Apple.

When the team moves in, will Ive be there, looking at the campus he designed and helped build with them? Or will he be off in England designing retail stores, the Apple Car, or Christmas ornaments for friends?

http://www.businessinsider.de/jony-ive-in-back-seat-at-apple-2016-11

Samsung Plans To Give Galaxy S8 An AI Digital Assistant

All the cool companies have them: digital assistants. Apple has Siri, Microsoft has Cortana, and Google  has the cleverly named Google Assistant. Now, Samsung plans to bring its own iteration of a virtual assistant in the Galaxy S8 next spring, according to a new report from Reuters.

The assistant will be based on work by Viv Labs, a San Jose-based AI company that Samsung acquired this October (the move immediately fueled speculation that Samsung was moving into the AI space). The founders of Viv Labs already have a strong track record in the field as the creators of Siri, which Apple bought in 2010.

Samsung appears to be tapping into Viv’s existing strengths rather than aiming to revamp the platform. One of Viv’s hallmarks is that it is designed to be a one-stop-shop that works seamlessly with third-party services. “Developers can attach and upload services to our agent,” Samsung Executive Vice President Rhee In-jong said during a briefing, according to Reuters. “Even if Samsung doesn’t do anything on its own, the more services that get attached the smarter this agent will get, learn more new services and provide them to end-users with ease.”

If the digital assistant is a hit, it could help Samsung make up for its financial losses over the Galaxy Note 7 recall, which is projected to cost the company at least $5.4 billion. It could also rebuild consumer confidence after the Note 7 debacle and, more recently, a recall of a Samsung top-loading washing machine due to “impact injuries.”

But the company is entering a crowded market. Apple paved the way with Siri, though its early lead is shrinking after the launch of Google’s Assistant, which can tap into Google’s well-established knowledge graph and search capabilities. And there’s always Amazon Alexa, which already has a home in the smart-home devices the Echo, Dot and Tap.

„Every door can be unlocked.“  Ellen Fondiler

http://www.forbes.com/sites/shelbycarpenter/2016/11/06/samsung-plan-galaxy-s8-ai-digital-assistant

Choosing the iPhone 7 is tougher than in the past

It’s a great phone, but where’s my headphone jack?

At a glance, you’d be hard-pressed to tell Apple’s new iPhone 7 and 7 Plus models, which go on sale Friday, from their 2015 and 2014 counterparts. They look almost identical, and are the same sizes. But once you get your hands on them, the differences are clear: better cameras, longer battery life, water resistance, doubled memory at essentially the same prices, and more.

Oh, and upon closer inspection, you’ll notice something else: the disappearance of the age-old, standard, perfectly fine audio jack that fits every earbud and headphone you own. Yeah, I know. I’m not crazy about that change either.

I’ve been using both the 4.7-inch iPhone 7 and the 5.5-inch iPhone 7 Plus for nearly a week, equipped with the much-improved iOS 10 operating system (which will be available for older models as well starting today). And I’m impressed. But I’m also annoyed. And impatient. All at the same time. Let me explain.

The impressive

The most important thing about the 2016 iteration of the iPhone is that, overall, it takes a truly excellent smartphone and makes it significantly better in a host of ways, even without overhauling the exterior design, and despite the removal of the standard audio jack.

From Apple’s usual long list, I’ve picked five big improvements that impressed me most.

First, Apple is doubling the memory at every price point on both models, starting with 32GB at the low end ($649 for the smaller iPhone 7) and going all the way to 256GB ($969 on the costlier iPhone 7 Plus). The increase in base memory is long overdue, but it’s great to see higher memory at essentially the same prices on costlier models (the larger Plus costs $20 more this year than last).

Then, there’s battery life. Apple claims it’s adding two hours of battery life between charges to the smaller model, and one hour to the bigger one. This is mainly because of a bigger battery plus a clever new processor, which uses low-power cores for routine phone functions and only kicks in high-power cores when needed.

Battery life on phones is notoriously hard to test, because it depends so heavily on what you’re doing, and on how hard the phone has to work to find a strong cellular or Wi-Fi connection. Still, in my short test period, on both coasts, the new iPhones had great battery life.

The bigger Plus easily turned in 13–15 hour days, often with power left in the tank, doing a wide variety of tasks. For instance, my test iPhone 7 Plus was at just a few minutes shy of 14 hours with 14 percent left, when I got to my DC-area home after flying from San Francisco and using the phone heavily on cellular networks, and hotel, airport, and airplane Wi-Fi. That’s a scenario I usually find to be a battery-killer, unless I charge. The smaller model was typically in the 12–14 hour range, even after hours of streaming video and music.

Then there’s water resistance — the ability to withstand being submerged in a toilet, sink, or puddle for long enough to fish it out and still find it fully functioning. (Samsung phones have been water resistant for a while.) I left an iPhone 7 submerged in a large mixing bowl of water for about 20 minutes (it can go deeper and longer, Apple says — 1 meter for 30 minutes). It was fine when I fished it out and dried it off. No rice needed. The only effects were somewhat gravelly sound quality for about 5 minutes, and an admonition not to charge it for five hours thereafter.

 James Bareham

Next, cameras. In my opinion, as a determined amateur who has never bought expensive cameras, the iPhone already had the best camera I owned. But Apple has redesigned it, with a larger, f/1.8 aperture that pulls in more light, a better flash, and the ability to capture a wider range of colors. Yet that’s just the start. On the smaller iPhone, the camera now has optical image stabilization, which limits shaky shots — a feature available only on the larger model last year.

And that costlier iPhone Plus now has two cameras, one a wide-angle version and one a telephoto version. Through software, they act as one single camera with easy, elegant controls. With just the tap of a button labeled „2X,“ I was able to get vivid, detailed shots at true 2x optical zoom, not the grainy digital zoom smartphone users have been wise to avoid forever. For me, and I suspect many other average folks, real zooming is a huge deal, bigger than some of the more esoteric effects photo hobbyists might value. In fact, this beautiful zooming dual camera is the first feature I’ve seen that might lure me to a large-screen phone.

And then there’s the operating system. This isn’t a review of iOS 10, which is a separate product from the iPhone 7. But, since it comes with it out of the box, the two are wedded. And I found almost every aspect of it to be faster and better. Lock screen notifications and widgets, and the Control Center are more logically organized and easier to use. Messaging, Maps, Music, News, and other features are improved. And then there are small things: for instance, to my surprise, the phone even automatically saved a map and directions of where I’d parked my car.

The phone is also faster, its screen is brighter, and it has stereo speakers. But I wasn’t wowed by these things in my testing. You might be.

Apple has also replaced the home button with a non-mechanical, non-moving button that uses a vibration „engine“ to simulate the feel of pressing a button. Three people I know said it felt like the whole bottom of the phone, not just the button, was being pushed. But it didn’t bother me, and it’s one less mechanical component to break.

The annoying

What did bother me was the aforementioned removal of the headphone jack. Yes, Apple has a long history of removing (and also pioneering) standard components, going back to the removal of the floppy disk from the first iMac in 1998.

I have often complained that Apple was acting too soon, but I always agreed that the move made sense at some point, because the displaced component (the floppy, the optical drive, the Ethernet jack) were being used less and less and there was something better (optical drives, the cloud, Wi-Fi) to replace them.

In this case, I see zero evidence that the 3.5mm audio jack is being used less or has hit a wall. It’s happily transmitting music, podcasts, and phone calls to many millions of people from many millions of devices as you read this sentence. Apple says it needed replacing to make more room for bigger batteries and other components.

I also don’t see that Apple has come up with a better replacement. The company is clearly trying to move the whole industry toward wireless audio, which has never been great due to patchy Bluetooth connectivity, poor fidelity — especially for music — and limited battery life.

 James Bareham

As a transition, the iPhone 7 includes Apple’s familiar white earbuds — and a free adapter — only with a Lightning connector at the end instead of the standard audio plug. It sounds the same. But now you can no longer charge your phone while making long phone calls or listening to music without a bulky adapter or dock. I label that worse, not better.

Apple says very few people do charge and listen at the same time. I respectfully disagree.

Next month, Apple will ship its take on wireless Bluetooth earbuds — called AirPods — which it hopes will solve some of the old wireless headphone woes and push the transition. Using a custom chip called the W1, the sophisticated AirPods supposedly make Bluetooth connections steadier and Bluetooth audio better. In my tests of preproduction AirPods, they delivered on these promises. And I could charge the phone while listening.

But the $159 AirPods only give you five hours of music listening time and two hours of talk time between charges, though they come in a handy little white case that provides 24 hours of additional juice. Apple notes that it’s proud of those numbers and that a 15-minute charge in the case gets you another 60 percent of rated battery life. It adds that if you use only one AirPod for phone calls, and keep swapping it out for a fresh one, you could talk on and on. Still, to me, they impose a limitation that standard, wired earbuds don’t have.

(Note: during my testing one of the AirPods had trouble holding a charge, so Apple swapped it out. It didn’t affect my tests of connecting and listening, and, since the product isn’t due out until late October, I can’t assume production units would have that problem.)

Not only that, but you have to charge the case periodically. Oh, and they kind of look like white plastic earrings. So, you should hope that’s your style, if you’re planning to buy them.

I’m sure the wireless earbud and headphone revolution is upon us now, and that, in a few years, the battery life will double or triple. For now, though, this Apple change of a standard component adds a hassle to your phone use, whether you are wired or wireless.

It’s an annoyance and a negative.

The impatient

I am impatient for Apple to do a top-to-bottom redesign of the iPhone, and the iPhone 7 isn’t it. Apple concedes this and strongly suggests a dramatic redesign won’t appear until next year, the iPhone’s 10th anniversary.

Let me stress: I am not for a redesign just for the hell of it. There are good reasons to change the look and feel of the iPhone, some of them evident in Samsung models. For instance, Samsung and others manage to fit a large screen like the one on the iPhone Plus into a smaller body and still squeeze in a big battery. But the iPhones still have big footprints for their screen sizes and big top and bottom bezels.

Another example: the iPhones still lack wireless or inductive charging. Adding that might require a redesign.

 James Bareham

Bottom line

The iPhone remains an outstanding smartphone, and this latest model makes it even better in many ways. And, unlike rival Samsung, Apple isn’t beset with the very serious problem of exploding batteries. But the whole audio jack thing makes choosing the iPhone 7 more difficult than it might have been.

You won’t go wrong buying the iPhone 7 if you can tolerate the earbud issue, especially if you’re on an installment plan like Apple’s that just gets you a new iPhone every year. You could get the iPhone 7 and then the big redesign next year, as long as you keep paying the monthly fee.

But, despite the undisputed improvements, this new iPhone just isn’t as compelling an upgrade as many of its predecessors. Some might want to wait a year for the next really big thing — and maybe a better audio solution to boot.

http://www.theverge.com/2016/9/13/12895574/walt-mossberg-iphone-7-plus-review

What Happens When Apple Designs A Product That Doesn’t Solve A Problem

Apple has repositioned the Apple Watch as „the ultimate device for a healthy life“—and left Gucci and productivity nerds in the dust.

[All Images: via Apple]

When the Apple Watch debuted in 2015, Apple told us it would be fashionable. It would usher in a new platform for high-tech fads covered in Vogue. It was going to save us time—one second at a time. It was going to do all sorts of things we couldn’t even imagine yet, like sharing your heartbeat, or scribbling a shape to a loved one.

But at this week’s Apple event, as the company introduced the Apple Watch 2, those promises seemed long forgotten. Instead, in a hero video, a mountain biker flew through the air, stuck the landing, and seemed to answer a call coming through from his mom; another flew up a steep climb before texting he was on his way. A presentation from Nike followed, encouraging users to run on Sundays, because supposedly, people who exercise on Sundays are more active overall. Then Tim Cook subtly dropped what sounded like a new tagline: „It’s the ultimate device for a healthy life.“

It was a remarkable pivot, and it hints at the watch’s fundamental shortcoming: It’s a product without an apparent use case. Whereas the iPhone put miniature computers into our hands, and the MacBook fulfilled the promise of truly portable personal computing, the watch is a solution in search of a problem. Apple does not disclose sales figures, but a recent report from the research firm IDC claims Apple Watch sales dipped almost 57% in the first quarter of 2016—this despite that sales at competitors such as Fitbit are up.

Perhaps it should come as little surprise, then, that Apple has backed into the de facto selling point of wearables, a new, old narrative: The watch will make you swole.

The Fashion Pitch

It made sense why Apple chased fashion. The field was crowded with fitness bands, and Apple no doubt wanted the watch to be something more desirable. Apple recruited Burberry’s Angela Ahrendts, and paid her $70 million to build Apple into a bona fide retail powerhouse—along with an all-star fashion team including Paul Deneve, Mark Newson, Catherine Monier, and Marcela Aguilar. Apple’s fashion push was about more than the watch, of course—it was about turning Apple into a lifestyle brand. But the watch was a linchpin.

When the watch debuted publicly at Paris Fashion Week, and Karl Lagerfeld was photographed trying one on, it seemed destined for immortality. The company recruited big-name designers, like Hermes, to create bands as easily as they do developers to make apps. And what were assuredly highly coordinated sponsorship campaigns, stars like Beyoncé wore them on Instagram. They even made a version in gold—for five figures—and forced appointments to try it on with white glove service. That watch has since been discontinued.

The problem with positioning the watch around fashion? At best, the Apple Watch can’t be fashionable for very long because fashion is fleeting. At worst, the Apple Watch just wasn’t that fashionable to begin with. Apple may have sold a billion iPhones, but iPhones don’t live all day, every day, on your wrist.

The Productivity Pitch

So fashion was a reach. The Apple Watch just needed a killer app, something that made it indispensable to a modern connected worker. The Apple Watch’s value at launch became „glances,“ which was supposed to help make you a more productive person. That meant checking your wrist for the time, or a text message, as if this was a breakthrough the world had never imagined before.

Of course, it doesn’t take much longer to pull a phone from your pocket than to check your wrist, and it’s certainly no less rude to your lunch mate. That promise of seconds saved, on a $350 device, just didn’t mean too much to a nation where most U.S. citizens have less than $1,000 in their bank account.

The Fitness Pitch

And so we’re back to this week, at Apple’s iPhone 7 event, where they showed off the Apple Watch 2, a device that’s almost entirely unchanged, except for a new way of marketing it. Did you see the watch controlling smart lights? Or appearing on a catwalk? Or giving someone directions to a meeting?

No. But there were burpees and golf swings! Aside from introducing a new, white ceramic version—a nod to current design trends—and quickly mentioning some new bands from Hermes, Apple ignored all this fashion and productivity stuff. But Apple was sure to show a splashy home-brew dunking machine, a metal arm that stress-drenched Apple Watches in a tank like they were strapped to an angry Michael Phelps swimming the 200-meter fly. Apple was sure to give Nike several minutes to introduce its custom Nike Plus branded version. „You can wear it when swimming, surfing, or just doing that occasional cannonball,“ Apple COO Jeff Williams said. The Cannonball: The Apple Watch’s first killer app.

And in case you think I’m editing the presentation for argument’s sake, realize, no moment was free from fitness. Heck, even when the software developer Niantic introduced Pokémon Go Apple Watch support, the script rounded about to tease the 4.6 billion kilometers players had taken since the game launched. Even this moment of unbridled, monster-catching recreation had to become quantified fitness on Apple’s stage.

Who Cares If The Apple Watch Is A Fitness Thingie?

So by now you’re probably thinking, „Okay, fine, Apple backtracked a bit, but now it knows what the Apple Watch is for. It reverse-engineered its purpose. Isn’t that enough?“

There’s one problem with Apple backing into this position selling a wearable fitness tracker: People abandon their fitness trackers. Multiple studies have found that after a few months, many people stop caring about all their pedometer graphs and sleep cycles. (Anyone who has worn a Fitbit knows why. Sooner or later, all of this life quantification isn’t really all that meaningful unless you’re literally in training.) Even Nike knew to abandon ship after more or less creating the category with the FuelBand. It’s a lot easier, and lower risk, to leave the hardware to Apple and just brand it.

And let’s be honest about the Apple Watch as a fitness device: It’s fine. Call it great if you want. But it’s not the 10-generational-leap better than all of its competitors, like the iPhone was when it changed the entire smartphone market. It’s just the shiniest of fitness bands in a largely commoditized fitness band market.

But perhaps the company has its eye on the long game. Aside from being yet another fitness tracker, the Apple Watch is also also a network-connected health-focused gadget that interfaces with the most popular smartphone in the world, on the wrists of millions of test subjects in the sort of worldwide, cross-ethnographic field study that that health industry could never match. And while the U.S. smartphone market makes a healthy $400 billion in revenue, the U.S. health care market pulls in $1.668 trillion.

If the Apple Watch is ready and waiting—with 5 or 10 years of proven reliability—whenever our doctors and insurers inevitably tag us like cattle to track our daily activity? Then it’s the one purpose for the Apple Watch that’s worth backing into.

https://www.fastcodesign.com/3063525/what-happens-when-apple-designs-a-product-that-doesnt-solve-a-problem

Facebook Is Not a Technology Company

At the close of trading this Monday, the top five global companies by market capitalization were all U.S. tech companies: Apple, Alphabet (formerly Google), Microsoft, Amazon, and Facebook.

Bloomberg, which reported on the apparent milestone, insisted that this “tech sweep” is unprecedented, even during the dot-com boom. Back in 2011, for example, Exxon and Shell held two of the top spots, and Apple was the only tech company in the top five. In 2006, Microsoft held the only slot—the others were in energy, banking, and manufacture. But things have changed. “Your new tech overlords,” Bloomberg christened the five.

But what makes a company a technology company, anyway? In their discussion of overlords, Bloomberg’s Shira Ovide and Rani Molla explain that “Non-tech titans like Exxon and GE have slipped a bit” in top valuations. Think about that claim for a minute, and reflect on its absurdity: Exxon uses enormous machinery to extract the remains of living creatures from geological antiquity from deep beneath the earth. Then it uses other enormous machinery to refine and distribute that material globally. For its part, GE makes almost everything—from light bulbs to medical imaging devices to wind turbines to locomotives to jet engines.

Isn’t it strange to call Facebook, a company that makes websites and mobile apps a “technology” company, but to deny that moniker to firms that make diesel trains, oil-drilling platforms, and airplane engines?

Part of the problem has to do with the private language of finance. Markets segment companies by industry, and analysts track specific sectors and subsectors. Exxon is an energy industry stock, while GE straddles energy, transportation, public utility, healthcare, and finance. The “technology” in the technology sector is really synecdoche for “computer technology.” Companies in that sector deal in software, semiconductors, hardware manufacturing, peripherals, data processing services, digital advertising, and so forth.

“Technology” has become so overused … that the term has lost all meaning.

For the NASDAQ exchange, where most so-called technology companies are traded, those industries are based on the Industry Classification Benchmark (ICB), a classification system developed by the London Stock Exchange’s FTSE Group. The ICB breaks the market down into 10 industries, each of which is broken down further into supersectors, sectors, and subsectors. The ICB technology industry counts “Internet” as a subsector of “Software & Computer Services,” for example. Companies are assigned to sectors and subsectors based on the (largest) source of their revenue (thus, GE is considered an energy company).

A company like Microsoft fits squarely into Technology, Software & Computer Services, because that’s where the majority of its revenue derives. Likewise, Apple is a traditional ICB “technology” company, in the sense that it makes most of its money from selling computer hardware. But the other companies in Bloomberg’s Monday top five are technology companies in a mostly vestigial way.

Almost all of Google’s and Facebook’s revenue, for example, comes from advertising; by that measure, there’s an argument that those firms are really Media industry companies, with a focus on Broadcasting and Entertainment. Of course, Alphabet is a lot like GE, or at least it aspires to be, with its investments in automotive (Self-Driving Car Project), health care (Calico), consumer goods (Nest), utilities (Fiber). But the vast majority of its revenue comes from Google’s ad business.

Amazon generates a lot of revenue from its Amazon Web Services (AWS) business—perhaps as much as $10 billion this year. It also derives revenue from manufacturing and selling computer hardware, like the Fire and Kindle. But thevast majority of Amazon’s revenue comes from international sales of consumer goods. Amazon is sort of a tech company, but really it’s a retailer.

A day later, at the close of the markets Tuesday, August 2, the tech sweep was already history. Exxon Mobil had pushed Facebook out of position five, topping the, uh, online broadcast media company’s $352 billion market cap by $8 billion, or 2 percent. Warren Buffett’s conglomerate Berkshire Hathaway also closed Tuesday at $354 billion in total value. Among Berkshire Hathaway’s top revenue drivers are insurance, manufacturing, and the obscure but ubiquitous McClane Company, which provides supply-chain management and logistics services for the grocery industry. It brought in $28 billion in revenue last year, or about $10 billion more than Facebook. Johnson & Johnson, which sells consumer and industrial health products from Actifed to Zyrtec, wasn’t far behind, with a $345 billion market capitalization at the close of business Tuesday.

Every industry uses computers, software, and internet services. If that’s what “technology” means, then every company is in the technology business—a useless distinction. But it’s more likely that “technology” has become so overused, and so carelessly associated with Silicon Valley-style computer software and hardware startups, that the term has lost all meaning. Perhaps finance has exacerbated the problem by insisting on the generic industrial term “technology” as a synonym for computing.

There are companies that are firmly planted in the computing sector. Microsoft and Apple are two. Intel is another—it makes computer parts for other computer makers. But it’s also time to recognize that some companies—Alphabet, Amazon, and Facebook among them—aren’t primarily in the computing business anyway. And that’s no slight, either. The most interesting thing about companies like Alphabet, Amazon, and Facebook is that they are not (computing) technology companies. Instead, they are using computing infrastructure to build new—and enormous—businesses in other sectors. If anything, that’s a fair take on what “technology” might mean as a generic term: manipulating one set of basic materials to realize goals that exceed those materials.

http://www.theatlantic.com/technology/archive/2016/08/facebook-is-not-a-technology-company/494183